Although Wireless Application Protocol mobile phones have already hit the Taiwan market, conducting mobile banking and stock transactions using the devices is still a long way off.
The delay is caused by two problems blocking the road to wireless monetary transactions. Systems to ensure secure wireless credit card and other transactions are still a year away from being implemented throughout Taiwan.
In addition, alliances between banks and WAP mobile phone service providers force customers to choose a bank and mobile phone service in the same package.
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Lopez said that wireless electronic transactions over WAP are difficult to secure, but that the technology to address the problem already exists in Finland and Sweden. The trick with wireless and all electronic transactions, he said, is "how to scramble the information so nobody can understand it and nobody can break it."
But he also said that once such security systems are in place for WAP systems, mobile transactions will be more secure than current telephone transactions.
"People punch in credit card numbers and rely on their bank and the integrity of the line. For IVR [Interactive Voice Response] -- there is no standard for that kind of transaction," Lopez said. "WAP will be much more secure than what's available now."
Once security systems are in place, however, there is still no guarantee mobile phone users will be able to access accounts at their own bank.
"All the WAP service providers want exclusive agreements," said James Han (
Han said that when banks and WAP mobile phone service providers make exclusive partnerships, it is the customer that loses.
"Take KG Telecom (
But according to Taiwan Cellular Corporation (
She said Taiwan Cellular is willing to work with any bank as long as the bank has purchased the necessary equipment to ensure secure transactions.
"We require a bank to have a dedicated lease line as a basic security requirement," she said. "Some banks don't want to make the investment to get the line."
She also said that there are other ways to ensure transaction safety beyond having secure lines. Taiwan Cellular has worked with several stock firms to allow WAP users to make transactions via their personal brokers -- bypassing the risk of sending a credit card number over the airwaves.
Innovative solutions have helped firms such as Taiwan Cellular get mobile banking and stock trading off the ground, but these services have, so far, not included the ability to make actual transactions using WAP service.
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